Enter the total loan amount ($) and the construction cost ($) into the Loan to Cost Calculator. The calculator will evaluate and display the Loan to Cost. 

Loan to Cost Formula

The following formula is used to calculate the Loan to Cost. 

LTC = LA / CC 

  • Where LTC is the Loan to Cost ($/$)
  • LA is the total loan amount ($) 
  • CC is the construction cost ($) 

How to Calculate Loan to Cost?

The following example problems outline how to calculate Loan to Cost.

Example Problem #1:

  1. First, determine the total loan amount ($). The total loan amount ($) is given as 50,000.
  2. Next, determine the construction cost ($). The construction cost ($) is provided as 100,000.
  3. Finally, calculate the Loan to Cost using the equation above: 

LTC = LA / CC 

The values given above are inserted into the equation below:

LTC = 50000 / 100000  = .50 ($/$)


Example Problem #2: 

The variables needed for this problem are provided below:

total loan amount ($) = 30,000

construction cost ($) = 100,000

Entering these values and solving gives:

LTC = LA / CC  = .30 ($/$)